Risks from Shortages of Skilled Workers and Rising Land, Freight and Material Prices

「The Group's business environment is undergoing simultaneous quantitative change, in which the market is shrinking because of structural population decline and other factors, and qualitative change, including higher-performance housing and greater consideration of the residential environment. To survive and grow in the years ahead, the Group must strengthen products and proposals that appeal to residents while developing new markets such as renovation and non-residential facilities. The decline in housing quality, construction delays and higher costs caused by shortages of skilled workers in the housing industry are also major issues.」

「In response to the recent rapid expansion of raw material shortages and repeated increases in material procurement costs, including surging raw material prices and freight costs, the company continues to pursue cost reductions through higher productivity and supply-chain strengthening, as well as revisions to sales prices for flooring, architectural millwork and other products in order to secure appropriate profitability.」

「In response to the recent rapid expansion of raw material shortages and repeated increases in material procurement costs, including surging raw material prices and freight costs, the company continues to pursue cost reductions through higher productivity and supply-chain strengthening, as well as revisions to sales prices for flooring, architectural millwork and other products in order to secure appropriate profitability.」

「In response to repeated cost increases, including surging raw material prices and freight costs, the company continues to pursue cost reductions through higher productivity, supply-chain strengthening, and revisions to sales prices for flooring, architectural millwork and other products in order to secure appropriate profitability. It also decided to revise the list prices published in the 2023 Edition Catalog for orders received from 1 April 2023.」

「In response to repeated increases in material procurement costs, including the recent rapid expansion of raw material shortages, disruptions to ocean transportation, and surging raw material prices and freight costs, the company continues to work on cost reductions through higher productivity and strengthening the supply chain, as well as revising sales prices for flooring, architectural millwork and other products to secure appropriate profitability.」

「In response to repeated increases in material procurement costs, including the recent rapid expansion of raw material shortages, disruptions to ocean transportation, and surging raw material prices and freight costs, the company continues to work on cost reductions through higher productivity and strengthening the supply chain, as well as revising sales prices for flooring, architectural millwork and other products to secure appropriate profitability.」

「Results for labor-saving products aimed at improving productivity at construction sites, where shortages of skilled workers are an issue, including Just-Cut Stairs and the Ceiling Furring System, exceeded the previous year's level.」

「Orders for labor-saving products aimed at improving productivity at construction sites, including Just-Cut Stairs and the Ceiling Furring System, exceeded the previous year's level.」

「As a result, sales in the housing building materials and equipment business declined from the same period of the previous year, but both the number of new customers and sales results for high-value-added products, including solid-wood storage products that capitalize on the characteristics of timber and labor-saving products that address shortages of skilled workers, increased.」

「Sales of the company's proprietary labor-saving products, including Just-Cut Stairs, Just-Cut Round-Bar Handrails, ECO-Size Closets, the Ceiling Furring System and Small Wall Panels, are growing steadily. These products address the aging of carpenters and labor shortages while helping to speed up construction work and standardize finished quality.」

「Sales of the company's proprietary labor-saving products, including Just-Cut Stairs, Just-Cut Round-Bar Handrails, ECO-Size Closets, the Ceiling Furring System and Small Wall Panels, are growing steadily. These products address the aging of carpenters and labor shortages while helping to speed up construction work and standardize finished quality.」

「However, recovery efforts following the successive natural disasters that occurred from last summer also contributed to delays in construction schedules by exacerbating the chronic shortage of skilled workers.」

「The response to natural disasters that have occurred successively since last summer has further aggravated the chronic shortage of skilled workers, and delays to construction schedules have become an industry-wide issue.」

「The response to natural disasters that have occurred successively since this summer has further aggravated the shortage of skilled workers, and delays to construction schedules have become an industry-wide issue.」

「Although lower mortgage rates resulting from the negative interest rate policy had a positive effect, new housing starts, which had continued to decline year on year from around summer 2017, also fell slightly in the first quarter, while the shortage of skilled workers became more serious.」

「Although we believe that overall economic conditions in Japan are by no means poor, it has also been reported that shortages of skilled workers are becoming more severe, land prices and freight and material costs are rising, and disparities are emerging among builders and contractors.」